The growing significance of the value of a company’s reputation is
highlighted this week by the introduction of new pensions
The legislation was heralded by John Browne, director of reputation
assurance at Price waterhouseCoopers, at last week’s Communication
Under the legislation all UK private sector pension funds will be
legally obliged to consider socially responsible investment (SRI) and
voting rights as part of their overall investment policy. The regulation
requires trustees to ensure that funds disclose whether they take full
account of the environmental, social and ethical impact of their
Browne says legislation is set to drive SRI to the top of the City and
’Companies have become increasingly aware of the need to report on
social issues to stakeholders, especially those who understand that
actively managing their corporate reputations feeds straight through to
the bottom line and shareholder value,’ he said.
The pensions legislation is one of several wide-ranging reforms of UK
company law proposed by the Government.
The DTI’s Company Law Review, currently in its consultative phase,
proposes that listed companies should report on their policies and
performance on community, social, ethical and reputation issues.